Risk and change management - Managing project changes

Learning Outcomes

After reading this article, you will know how changes are managed on projects, how change control ensures discipline, and precisely what steps are required for handling change requests. You will be able to identify the impact of changes on project baselines, understand the integrated change control process, and recognize the relationship between risk and change management. You will be ready to answer exam questions that test your understanding of the procedures for evaluating, approving, and implementing project changes.

PMP Syllabus

For PMP, you are required to understand the principles and best practices for managing project changes. Focus your revision on the following areas:

  • Understand the need for and steps involved in integrated change control.
  • Distinguish between the types of changes that require formal approval and those that do not.
  • Explain how to assess the impact of change requests on project constraints (scope, schedule, cost, quality, risk, resources, stakeholder satisfaction).
  • Apply the correct process for identifying, documenting, evaluating, and approving changes.
  • Describe the role and functioning of the change control board (CCB).
  • Recognize common risks associated with project changes and the importance of risk analysis in change management.
  • Demonstrate the linkage between change control and ongoing project risk management.
  • Be able to answer scenario-based questions related to managing project changes in both predictive and adaptive (agile) environments.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

  1. A stakeholder requests a significant change affecting the project scope during execution. What should the project manager do first?
    1. Implement the change immediately
    2. Escalate directly to the sponsor
    3. Assess the impact of the change on all constraints
    4. Accept all stakeholder changes by default
  2. Which of the following describes integrated change control in a predictive environment?
    1. Changes may be freely made at any time by the team
    2. All changes affecting baselines require formal analysis and approval
    3. Only minor changes require approval
    4. Changes are ignored once the project is executing
  3. In an adaptive (agile) approach, who usually has the primary authority to approve changes to requirements or backlog priorities?
    1. Change control board (CCB)
    2. Product owner
    3. Project manager
    4. Functional manager

Introduction

Change is a constant reality in projects. It is essential that project managers use a disciplined and systematic process to manage changes in order to protect the project's objectives and keep all stakeholders aligned. This article explains how project changes are managed through integrated change control, the types of change requests, the steps for analyzing and implementing changes, and how changes interact with project risks and baselines.

Key Term: Integrated Change Control
The coordinated process of reviewing, approving, rejecting, and managing proposed changes to all aspects of the project and its baselines.

Why Project Changes Matter

Every project will experience changes—whether coming from stakeholders, external events, risks, or ongoing discoveries during execution. Not all changes are negative, but every change has the potential to impact project scope, schedule, cost, quality, risk, and stakeholder satisfaction. It is essential to control these changes to prevent scope creep, protect baselines, and ensure the change adds value.

Key Term: Change Request
A formal proposal, documented by stakeholders or team members, to modify any aspect of the project such as scope, schedule, cost, or processes.

Key Term: Change Control Board (CCB)
A formally designated group with authority to review, approve, defer, or reject changes to the project baselines and management plan.

The Principle of Integrated Change Control

In traditional (predictive) projects, changes to project baselines (e.g., scope, schedule, cost) can have extensive impacts. Integrated change control requires that all proposed changes—other than simple updates to project documents—be properly evaluated before approval. Change management should be disciplined and consistent throughout the life of the project.

Steps in Managing Project Changes

Integrated change control generally follows these steps:

  1. Identify the Need for Change: Any change to the scope, schedule, cost, quality, risk approach, or plan is first logged as a change request.
  2. Document the Change Request: Use the project’s change management plan and standard templates to record the details and reasons for the change.
  3. Evaluate the Impact: Before acting, analyze the impact of the proposed change on all project constraints: scope, schedule, cost, quality, resources, risk, and stakeholder expectations. This will often involve seeking expert input, especially for complex technical, legal, or compliance-related changes.
  4. Explore Options: Not all changes should be approved in the form requested. The project manager considers options to reduce negative impacts, such as fast-tracking, crashing, or considering alternative solutions.
  5. Seek Approval: Send the documented and analyzed change request to the change control board (CCB), sponsor, or other authorized body (depending on the project’s governance structure). Only changes to baselines, plans, and contracts require formal approval.
  6. Update Plans and Baselines: If the change is approved, update all relevant sections of the project management plan, including baselines and schedules. Update the change log to record the outcome and inform all stakeholders.
  7. Communicate to Stakeholders: All affected parties must be informed of what has changed, why the change was made, and any new expectations.
  8. Implement and Monitor: The change is implemented by the project team. Monitor the results to ensure the change delivers the intended benefit and does not produce undesirable side-effects.

Exam Warning

Many project managers make the error of approving or implementing changes before analyzing their full impact. For the PMP exam, you must always evaluate the impact on all project constraints before taking action or seeking approval.

Handling Changes in Adaptive (Agile) Approaches

In agile and hybrid projects, change is handled more flexibly. Smaller, timeboxed increments make changes less disruptive, and requirements are expected to change. In most agile frameworks, the product owner prioritizes work in the backlog and authorizes changes to requirements between cycles. However, any change that exceeds time or budget constraints may still need escalation outside the team.

Key Term: Product Owner
The person responsible for maximizing product value by managing the product backlog and authorizing requirement changes in adaptive environments.

Types of Change Requests

Common types of change requests include:

  • Corrective action: Realigns future performance with the project plan.
  • Preventive action: Reduces the probability of potential future risks.
  • Defect repair: Modifies a non-conforming project deliverable or process.
  • Updates: Modifies project documents not in the baseline (may not need formal approval).

The Role of Baselines in Change Control

Baselines for scope, schedule, and cost provide the reference point against which performance is measured. Any approved change that affects a baseline must result in the official update of the baseline. If a change does not affect a baseline, it may be implemented directly by the project manager as an update, not a formal change.

Change Risks and Their Management

Every change introduces risk. Project teams must identify the risk impact of changes, revise the risk register when changes are implemented, and ensure that new risks (or opportunities) introduced by changes are planned for. Failing to analyze risk may cause unexpected delays or failures after a change is implemented.

Key Term: Scope Creep
The uncontrolled, unmanaged growth of project scope without proper evaluation and approval, leading to overruns in time, cost, or effort.

Worked Example 1.1

A project manager on a construction project receives a stakeholder request to add a set of windows to the building design. Potential cost and schedule impacts are not clear. What is the correct order of steps to follow?

Answer: Document the change request → Assess the impact on time, cost, risk, and other constraints → Explore options (e.g., alternative materials or phasing) → Submit the request for approval to the CCB or sponsor → If approved, update the schedule, scope, and cost baseline and inform all stakeholders → Implement and track the outcome.

Worked Example 1.2

A product owner notices that customer feedback suggests a feature should be prioritized differently. What does the product owner do in an agile context?

Answer: The product owner reviews and reprioritizes the backlog. Changes are incorporated in the next sprint. If the change affects timelines or major scope, the issue is escalated according to the project's governance structure.

Adaptive Approaches, Changes, and Agile Governance

In agile, requirements are expected to change over time. The project manager ensures that change processes are clear and that the appropriate role (usually the product owner) is empowered to adjust priorities. Major scope, cost, or schedule changes beyond established tolerances are documented and escalated as necessary.

Who Approves Project Changes?

  • Predictive projects: CCB, sponsor, or manager as defined in the governance plan.
  • Adaptive/agile projects: The product owner within cycle or backlog limits; escalations above agreed tolerances go to management or sponsor.

Managing Change Risks

After approval, always update the risk register to reflect any new threats or opportunities caused by the change. Assign owners for secondary risks resulting from the change, and implement contingency plans if needed.

Revision Tip

Remember: On the exam, you must not implement changes before formally analyzing and obtaining approval. Most change management questions test your ability to follow proper process and document all steps.

Summary

Project changes are inevitable and must be controlled through integrated change control. Good change management requires documentation, analysis of impacts and risks, formal approval, and updates to baselines and plans. In adaptive environments, processes are streamlined but change must still be managed. The change control process is a frequent exam focus.

Key Point Checklist

This article has covered the following key knowledge points:

  • Integrated change control ensures all project baseline changes are managed systematically and consistently.
  • Any change proposal must be documented, impact-assessed, and options explored before requesting approval.
  • Change requests affecting baselines or project planning require formal approval, usually by a CCB or sponsor.
  • Minor project document updates can be made without formal change control.
  • Approved changes result in updates to all affected baselines and project management plan components, with communication to stakeholders.
  • In agile projects, the product owner controls requirements changes within limits but major changes may be escalated.
  • Uncontrolled changes (scope creep) risk project failure and must be avoided.
  • Every change introduces new risks, and the risk register and plans must be updated after change approval.
  • Always inform and update all affected stakeholders of status and results.

Key Terms and Concepts

  • Integrated Change Control
  • Change Request
  • Change Control Board (CCB)
  • Product Owner
  • Scope Creep
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